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May 14, 2013

Nationwide Releases Fee-Based Variable Annuity

Industry continues to woo once-spurned advisors

Nationwide is the latest company to join the ranks of an ongoing industry push to convince “reluctant” advisors that their concerns with variable annuities have been addressed.

The company also introduced Nationwide Lifetime Income Track, an optional guaranteed lifetime withdrawal benefit rider available for an additional cost with Nationwide Destination Architect for clients who want guaranteed lifetime withdrawals in retirement.

“This product will appeal primarily to fee-based advisors who may have been reluctant to sell VAs in the past based on cost,” Eric Henderson, senior vice president of life insurance and annuities for Nationwide, said in a statement.

Features of Nationwide Destination Architect include:

No surrender charges

A One-Year Enhanced Death Benefit rider (available for an additional cost)

Spousal Protection Feature (SPF), available at no additional cost on all death benefit options

More than 100 investment options when Lifetime Income Track is not elected

The Lifetime Income Track optional GLWB rider includes features, such as:

Guaranteed lifetime income without annuitization

An annual step-up feature on the income benefit base

A Joint Option, available for an additional cost, that allows income payments to continue for the contract owner’s spouse

Lifetime withdrawal percentages based on the owner’s age and rider duration